Aflac Incorporated (AFL)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable franchise bought at a sensible price. Aflac's niche—supplemental health and life insurance in Japan and the U.S.—has been profitable and defensively positioned; the stock's beta of 0.58 and a 2.10% dividend yield suggest a calmer ride. But the record is uneven. In fiscal 2025, the year ended 2025-12-31, revenue was $17.2B, net income $3.6B, and diluted EPS $6.82, down from fiscal 2024 revenue of $18.9B, net income $5.4B, and EPS $9.63. The latest quarter showed improvement: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.1B, net income $825.0M, and diluted EPS $1.63, versus $4.2B, $599.0M, and $1.11 in fiscal Q2 2025. Still, FairStock's Lynch category is SLOW GROWER — Shrinking, with five-year profit and revenue declines. At the 2026-10-26 close, FairStock shows a P/E of 13.05, P/B of 2.00, ROE of 16.91%, and D/E of 0.53. The Piotroski F-Score is 3/9, which warns that recent accounting signals are weak, and ROCE of 3.13% is not impressive. The 16.91% ROE and low beta are real positives, but negative revenue and profit growth keep me from calling this a high-quality compounder. CET1, net interest margin, and combined ratio are not in the data, so I cannot judge insurer capital or underwriting trends fully. Price looks fair, perhaps modestly cheap, not a fat margin of safety.

In plain English: Aflac sells supplemental health and life insurance, mainly in Japan and the U.S. The business still earns solid profits, but sales and yearly profits have been shrinking recently. At the recent price, the shares look roughly fair to modestly cheap compared with those profits, not a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer